AUD Reaches Four-Month High Against US Dollar Amid RBA Hawkishness
The Australian Dollar (AUD) has reached a four-month high against the US Dollar due to hawkish statements from the Reserve Bank of Australia. This has provided support for the AUD, which is currently trading at C$0.9902 against the Canadian Dollar (CAD). However, despite this strength, the AUD/CAD pair is expected to consolidate near its key moving averages.
The technical analysis suggests that the pair is trading below its short and medium-term moving averages, but remains above major long-term levels. The Ichimoku Kijun at C$0.9937 stands as immediate resistance, while momentum indicators are weak with MACD signals Sell, ADX Neutral, and RSI deep in oversold territory.
The analysts predict a trading range of C$0.9852 to C$0.9952 over the next two to three sessions, reflecting typical volatility relative to current price levels. Downside risk is significantly higher, with a 78% probability assigned to further declines against a 22% chance of reversal.
The Reserve Bank of Australia officials have left open the option of a fourth rate increase this year, providing support for the Australian Dollar. This has helped the AUD reach its current high against the US Dollar, and analysts believe it will continue to influence the AUD/CAD pricing in the coming sessions.